BOSTON (TheStreet) -- Shares of medium-sized companies are outpacing blue-chip stocks this year. The following mid-caps are positioned to gain.
5. Tyler Technologies (TYL) provides technology services to government agencies.
The numbers: Third-quarter net income rose 18% to $7.5 million and earnings per share climbed 25% to 20 cents, boosted by a lower share count. Revenue grew 8% to $74 million. Tyler's gross margin remained steady at 47%, and its operating margin was unchanged at 17%. The company has a strong financial position, with $7.9 million of cash and $2.1 million of debt.
The stock: Tyler Technologies has rallied 69% this year, outperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 30, a premium to the market and application software peers. The company doesn't pay dividends.
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